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DECREE

On delivery services

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the May 25, 2002 Ordinance on Post and Telecommunications;

At the proposal of the Minister of Post and Telematics,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Governing scope

1. This Decree provides for activities of dealing in and using the services of delivery of information in the form of document and services of delivery of merchandise packages and packs in Vietnam, below collectively referred to as delivery services.

2. This Decree does not govern activities of dealing in and using postal services; logistic services; international multi-modal transport services; forwarding services by modes of air, sea, inland waterway, railway and road transportation.

Article 2.- Subjects of application

This Decree applies to organizations and individuals engaged in dealing in and using delivery services in Vietnam.

Article 3.- Application of treaties

Where a treaty to which Vietnam has signed or acceded contains provisions different from those of this Decree, the provisions of the treaty prevails.

Article 4.- Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Delivery service means the performance of one, a number or all of the stages of collecting, sorting, transporting and distributing by physical means information in the form of document and merchandise packages and packs.

Services of delivery of information in the form of document also include combined delivery services (combined with electronic means) and services of delivery of direct advertising information (publications with advertising contents sent to various addresses).

2. Express mail service means delivery service involving the quickness in time and high reliability. Express mail services also comprise other elements of added value such as collecting at consignors' addresses, handing to consignees, searching and positioning changed places and addresses of receipt while in transport, delivery notification, and other added value elements.

3. Information in the form of document means information expressed on any physical means, including mails and information on documents (other than mails).

4. Mail constitutes information in the form of document packed and securely stuck, having a weight not exceeding 2 kilograms each piece and addresses of receipt. General instructions on places of receipt are also considered addresses of receipt.

5. Enterprises dealing in delivery services are those which provide delivery services for customers and bear responsibility for the provided services. Delivery service enterprises perform by themselves or hire other organizations or individuals to perform one, a number or all of the service stages.

6. Exclusive area means a service area which only Vietnam Post, a state-owned postal enterprise, is entitled to establish by law to secure the performance of public-utility obligations to provide services.

Article 5.- Exclusive area for Vietnam Post

1. Exclusively reserved for Vietnam Post is the provision of services of delivery of information in the form of document having receipt addresses with the weight and postage prescribed by the Ministry of Post and Telematics for each period. This exclusive area does not cover the provision of services of delivery of books, newspapers, magazines and periodicals.

2. Other delivery service enterprises are allowed to provide services of delivery of information in the form of document having receipt addresses with the weight and beyond outside those reserved exclusively for Vietnam Post.

3. The Ministry of Post and Telematics shall announce the roadmap for opening up the delivery service market in accordance with Vietnam's commitment on delivery services upon its accession to the World Trade Organization (WTO).

Article 6.- Contents of state management of delivery services

1. To elaborate and promulgate legal documents, policies and plannings on delivery service dealing and use.

2. To guide and organize the implementation of regulations related to delivery service-dealing and

-using activities.

3. To examine, inspect and handle violations in delivery service dealing and use.

Article 7.- Competence to perform state management of delivery services

1. The Government performs the unified state management of delivery service dealing and using activities nationwide.

2. The Ministry of Post and Telematics is answerable to the Government for taking the prime responsibility for, and coordinating with relevant ministries and branches in, performing the state management of delivery service-dealing and -using activities.

3. Ministries, ministerial-level agencies and provincial/municipal People's Committees shall, within the ambit of their respective tasks and powers, coordinate with the Ministry of Post and Telematics in performing the state management of delivery service-dealing and -using activities.

4. Provincial/municipal Services of Post and Telematics act as professional bodies assisting provincial/municipal People's Committees in performing the function of state management of delivery service dealing and using activities in their respective localities.

Article 8.- Application of export and import procedures to international delivery services

1. Information in the form of document, merchandise packages or packs, when being exported or imported, must go through all customs. cultural, quarantine and other procedures prescribed by law.

2. Enterprises dealing in international delivery services, when acting as lawful representatives of service users, may carry out the procedures mentioned in Clause 1 of this Article and collect from the service users a sum paid for this service.

3. Service users are obliged to pay to delivery service enterprises assorted taxes, fees and charges the latter have paid to competent state bodies when carrying out the procedures mentioned in Clause 1 of this Article.

Article 9.- Safety and security in delivery services

1. The assurance of safety and security in delivery services rests with all organizations and individuals.

2. Delivery service users shall abide by the provisions of law and regulations of delivery service enterprises on safety and security in delivery services.

3. Delivery service enterprises shall apply measures to ensure the safety and security in delivery service.

4. Delivery service enterprises shall coordinate with, and create all favorable conditions for, competent state bodies to apply professional measures prescribed by law to protect the national security and maintain social order and safety.

Competent state bodies, when performing their tasks of protecting national security and maintaining social order and safety under the provisions of law, shall create conditions for delivery service enterprises to maintain their business activities and service quality.

Article 10.- Keeping secret private information

1. Private information related to the use of delivery services must be kept secret.

2. The opening and examination of information in the form of document (excluding mails), merchandise packages or packs are carried out only in the following cases:

a/ Opening for handling and re-packing when they are damaged or their outer covers are ragged;

b/ Opening for presentation to competent state bodies upon carrying out export or import procedures under the provisions of Clauses 1 and 2, Article 8 of this Decree;

c/ Opening for handling under the regulations on derelicts between the Ministry of Post and Telematics and the Ministry of Finance. Information in the form of document, merchandise packages or packs are considered abandoned when there are adequate evidences showing that the consignees decline to receive them and the consignors also decline to take them back or within 12 months after the delivery they can neither be delivered to consignees nor returned to consignors.

3. The search and confiscation of information in the form of document, merchandise packages or packs are only conducted under decisions of competent state bodies under the provisions of law.

Article 11.- Prohibited delivery in delivery services

1. Publications, articles and merchandises banned by Vietnam from circulation, export or import, or publications, articles and merchandises banned from import by receiving countries.

2. Objects or substances which cause explosion, fire or danger.

3. Objects or substances which cause unhygiene or environmental pollution.

4. Vietnamese currency, valuable papers in Vietnamese currency.

5. Foreign exchanges, valuable papers in foreign currency.

Chapter II

DELIVERY SERVICE BUSINESS, LICENSING OF MAIL DELIVERY SERVICE BUSINESS AND OTHER PROVISIONS

Section 1. DELIVERY SERVICE BUSINESS

Article 12.- Delivery service enterprises

1. Enterprises set up under Vietnamese law may deal in delivery services when they are granted a delivery service business registration certificate, for enterprises with domestic investment capital, or a certificate of investment in the domain of delivery in Vietnam, for enterprises with foreign investment capital of which capital portions contributed by foreign partners do not exceed 51%.

2. Enterprises with foreign investment capital of which capital portions contributed by foreign partners exceed 51% and enterprises with 100% foreign capital may deal in delivery services from January 11, 2012.

3. Enterprises dealing in the services of mail delivery must possess a mail delivery service business license granted by a competent body under the provisions of Articles 15 and 17 of this Decree.

Article 13.- Notification on delivery service business activities

1. Delivery service enterprises shall notify their business activities to the following relevant competent state bodies:

a/ Provincial/municipal Services of Post and Telematics (in case of intra-provincial delivery services);

b/ The Ministry of Post and Telematics (in other cases).

2. A dossier of business activity notification comprises:

a/ A written notification on delivery service business activities;

b/ A valid copy of the delivery service business registration certificate or certificate of investment in delivery service business in Vietnam;

c/ A model contract on service provision and use;

d/ The table of charge rates, service quality, and limited liability for damage compensation in case of damage.

3. Delivery service enterprises make the notification within 30 days from the first day of service provision by way of sending the notification dossiers specified in Clause 2 of this Article to relevant competent bodies defined in Clause 1 of this Article.

4. Notification on business activities is made for the first time when delivery service enterprises start providing their services and repeated when delivery service enterprises modify the contents defined at Points c and d, Clause 2 of this Article. Dossiers and procedures for repeated notification are the same as those for the first-time notification defined in Clause 2 of this Article.

Article 14.- Certification of notification on delivery service business activities

1. Relevant competent state bodies defined in Clause 1 of Article 13 of this Decree shall send their written certifications to delivery service enterprises within 10 working days after the receipt of complete and valid dossiers of notification on business activities.

2. Where notification dossiers are incomplete or notification contents are inaccurate, relevant competent state bodies defined in Clause 1, Article 13 of this Decree shall guide delivery service enterprises to amend and supplement them within 10 working days after the receipt of dossiers of notification on business activities.

3. While carrying out the procedures for notification on their business activities, delivery service enterprises shall keep providing services in accordance with their delivery service business registration certificates or certificates of investment in delivery services in Vietnam.

Section 2. LICENSING OF MAIL DELIVERY SERVICE BUSINESS

Article 15.- Conditions for mail delivery service business licensing

An enterprise will be granted a mail delivery service business license when fully meeting the following conditions:

1. Possessing a delivery service business registration certificate or a certificate of investment in delivery services in Vietnam as provided for in Clause 1, Article 12 of this Decree.

2. Having a business plan.

3. Having measures and conditions to ensure safety and security in delivery service business activities.

4. Its lawful representative has experience of working in the post or delivery domain for at least one year.

Article 16.- Procedures for granting mail delivery service business licenses

1. Enterprises fully meeting the conditions defined in Article 15 of this Decree shall send their dossiers of application for mail delivery service business licenses to relevant competent state bodies defined in Article 17 of this Decree. A dossier comprises:

a/ The application for a mail delivery service business license;

b/ A valid copy of the delivery service business registration certificate or certificate of investment in delivery services in Vietnam;

c/ A business plan;

d/ A model contract on service provision and use;

e/ A table of charge rates, service quality, and liability limits for damage compensation in case of damage.

2. Where the dossiers of application for licenses are incomplete or their contents are inaccurate, relevant competent state bodies defined in Article 17 of this Decree shall guide enterprises to amend and supplement them within 10 working days after the receipt of dossiers of application for business licenses.

3. Within 30 days after the receipt of complete dossiers specified in Clause 1 of this Article, relevant competent state bodies defined in Article 17 of this Decree shall examine them and grant the licenses. In case of non-grant of licenses, relevant competent state bodies defined in Article 17 of this Decree shall reply in writing, clearly stating the reasons within the above time limit.

4. The Ministry of Post and Telematics shall specify conditions and procedures for examination of dossiers and grant of mail delivery service licenses.

5. Enterprises licensed for mail delivery service business are obliged to pay relevant charges and fees under the provisions of law.

Article 17.- Competence to grant mail delivery service business licenses

1. Provincial/municipal Services of Post and Telematics shall grant licenses for cases of intra-provincial mail delivery services.

2. The Ministry of Post and Telematics shall grant licenses for other cases.

Article 18.- Withdrawal of mail delivery service business licenses

1. Relevant competent state bodies defined in Article 17 of this Decree are entitled to withdraw mail delivery service business licenses when the licensees commit violations in one of the following cases:

a/ Failing to meet the conditions on safety and security in the course of providing delivery services;

b/ Failing to provide services for one year after being licensed;

c/ Other cases prescribed by law.

2. Delivery service enterprises having their licensed withdrawn may not apply for re-grant of licenses within 2 years from the date competent bodies issue decisions to withdraw the licenses. After the two-year time limit, enterprises wishing to apply for re-grant of licenses shall carry out procedures to apply for grant of new licenses.

Section 3. OTHER PROVISIONS

Article 19.- Forms of entry into contracts on service provision and use

1. The provision and use of delivery services are effected on the basis of written contracts or other contracting forms agreed upon by parties.

2. Valid delivery bills, vouchers, bills of lading and other forms of written documents expressing the contracting between delivery service enterprises and service users serve as bases for determination of the rights and obligations of contractual parties.

3. A contract on delivery service provision and use has the following principal terms:

a/ The contractual parties;

b/ Type of service;

c/ Time, venue and mode of service provision;

d/ Service quality, charge and payment mode;

e/ Rights and obligations of the parties;

f/ Liabilities and fines for contractual breaches.

4. Contracts on delivery service provision and use must be expressed in Vietnamese.

Article 20.- Rights and obligations of enterprises

1. Delivery service enterprises have the following rights:

a/ To request consignors to permit the examination of contents of information in the form of document (excluding mails), merchandise packages or packs to be delivered;

b/ To refuse to provide delivery services for information in the form of document, merchandise packages or packs which fail to meet the delivery requirements and conditions of delivery service enterprises or violate the provisions of Article 11 of this Decree.

2. Delivery service enterprises have the following obligations:

a/ To supply adequate information on services to users, including quality standards, charge rates, liabilities to pay damages and other relevant information, in various forms: posting up at transaction places, direct notification to users, leaflets, service advertisement and other forms;

b/ To instruct users to pack or wrap information in the form of document or merchandise packages or packs in order to ensure safety in the course of delivery;

c/ To clearly publicize solutions and measures for handling cases of non-delivery;

d/ To ensure the delivery service quality up to the standards announced by enterprises;

e/ To ensure safety in delivery services: To protect safety for information in the form of document, merchandise packages or packs, safety for personnel and safety for delivery networks;

f/ To ensure security in delivery services: To keep secret private information on service users; not to open, fraudulently exchange contents of information in the form of document, merchandise packages or packs, unless otherwise provided for by law or agreed upon by the two parties;

g/ To receive and settle complaints of service users;

h/ To pay damages to service users as agreed in contracts on service provision and use and provided for by law;

i/ To pay on behalf of service users assorted taxes, charges and fees (if any).

Article 21.- Rights and obligations of service users

1. Delivery service users have the following rights:

a/ To request delivery service enterprises to supply adequate information on services;

b/ To be assured of confidentiality of private information and safety of information in the form of document, merchandise packages or packs;

c/ To request delivery service enterprises to settle complaints about services already used;

d/ To be compensated for damage as agreed in contracts on service provision and use and provided for by law.

2. Delivery service users have the following obligations:

a/ To bear responsibility before law for the contents of information in the form of document, merchandise packages or packs;

b/ To comply with the law on circulation ban or restriction against information in the form of document, merchandise packages or packs;

c/ To use correct names and addresses when using delivery services and to use other persons' names and addresses only when authorized;

d/ To fully pay charges for services already used;

e/ To pay damages to victims according to law, if service users are at fault.

Article 22.- Service quality standards

1. Delivery service enterprises shall formulate and publicize delivery service quality standards.

2. Delivery service quality standards must at least cover the following criteria:

a/ The delivery duration, which is a duration from the time the information in the form of document, merchandise packages or packs are received to the time they are delivered to the receipt addresses;

b/ The safety degree, which is the degree that the information in the form of document, merchandise packages or packs are kept intact, not damaged or torn when they are delivered to the receipt addresses;

c/ The time for settlement of complaints;

d/ The liability to pay damages.

3. Delivery service enterprises shall ensure the delivery service quality standards they have publicized.

Article 23.- Service charges

1. Delivery service charges are decided by delivery service enterprises.

2. For services of delivery of information in the form of document with receipt addresses, delivery service enterprises may decide on charges other than those prescribed by the Ministry of Post and Telematics for the exclusive area of Vietnam Post.

Chapter III

SETTLEMENT OF COMPLAINTS, DISPUTES, COMPENSATION

Section 1. SETTLEMENT OF COMPLAINTS AND DISPUTES

Article 24.- Complaints and settlement of complaints between parties

1. Complainants shall supply relevant papers, documents and evidences and bear responsibility for the contents of their complaints.

2. The statute of limitations for complaints about domestic and international delivery services does not exceed 6 months from the date of delivery.

3. When the statute of limitations for complaints provided in Clause 2 of this Article expires, delivery service enterprises are not liable to settle the complaints.

4. The time limits for settlement of complaints are as follows:

a/ For domestic delivery services, it does not exceed 2 months after the receipt of complaints;

b/ For international delivery services, it does not exceed 3 months after the receipt of complaints.

5. When the complaint settlement time limits specified in Clause 4 of this Article expire, delivery service enterprises shall compensate for damage (if any) to service users under the provisions on compensation for damage in Section 2, Chapter III of this Decree.

6. Complaints about administrative decisions or administrative acts of competent individuals or agencies are settled according to the law on complaints and denunciations.

Article 25.- Settlement of disputes

Disputes arising from delivery service provision and use must be settled first of all through negotiations between parties. In case of failure to reach agreement, the afflicted parties may initiate lawsuits according to law.

Section 2. COMPENSATION FOR DAMAGE

Article 26.- Enterprises' liability to pay compensation for damage

1. When damage arises, delivery service enterprises shall pay damages to service users, except for cases of exemption from the liability to pay damages specified in Clause 2 of this Article.

2. Delivery service enterprises are exempt from the liability to pay damages in the following cases:

a/ Types of service without documents certifying the delivery;

b/ The delivery was made as agreed in contracts on service provision and use and service users have no complaints at the time of receipt;

c/ The damage or loss occurs due to the fault of service users or the natural characteristics of information in the form of such document, merchandise packages or packs;

d/ The documents, merchandise packages or packs are confiscated or destroyed under the provisions of law;

e/ The documents, merchandise packages or packs are confiscated according to the laws of receiving countries which have notified such in writing (for international delivery services);

f/ Force majeure circumstances prescribed by law.

Article 27.- Service users' liability to pay damages

1. Service users have the responsibility to compensate for damage caused to the parties afflicted by the delivery of publications, articles or merchandises banned under the provisions of Article 11 of this Decree.

2. Service users' liability to pay damages in the cases mentioned at Clause 1 of this Article is not greater than the limit of delivery service enterprises' liability to pay damages in similar cases.

Article 28.- Principles for damage compensation

1. Delivery service enterprises may set the limits of liability to pay damages, which, however, must not be lower than the limit of liability to pay damages set by the Ministry of Post and Telematics.

2. Damages are paid in Vietnamese currency.

3. Damages are paid to consignors. Where information in the form of document, merchandise packages or packs are partially damaged or lost, which the consignees agree to receive, the damages are paid to consignees. The compensation levels are determined on the basis of the actual damage level and the damage levels are calculated at the market prices for articles and merchandises of the same types at the places and time the articles and merchandises are accepted, but must not exceed the compensation levels in the cases where merchandise packages or packs are lost or completely damaged.

4. Delivery service enterprises are not required to compensate for indirect damage or profits not earned due to the provision of poor-quality services.

Chapter IV

REPORTING, INSPECTION, EXAMINATION, HANDLING OF VIOLATIONS

Article 29.- Reports of delivery service enterprises

1. For intra-provincial delivery services, delivery service enterprises shall report to provincial/municipal Services of Post and Telematics on their annual business activities. For other cases, delivery service enterprises shall report to the Ministry of Post and Telematics on their annual business activities.

2. The deadline for submission of reports is January 10 of the following year.

3. A report covers the following contents: the number of transaction places; the quantity of complaints and damage compensation; the results of production and business activities. In case of necessity, relevant competent state bodies defined in Clause 1 of this Article may request enterprises to submit extraordinary reports.

Article 30.- Inspection and examination

Organizations and individuals engaged in delivery service-dealing and -using activities in Vietnam are subject to inspection and examination by Post, Telematics and Information Technology Inspectorates and competent state bodies according to law.

Article 31.- Handling of violations

Organizations and individuals committing law violations in delivery service-dealing and -using activities are all sanctioned for administrative violations or examined for penal liability according to law.

Chapter V

IMPLEMENTATION PROVISIONS

Article 32.- Implementation effect

1. This Decree takes effect 15 days after its publication in "CONG BAO".

2. To cancel the entire Sections 2 and 3 of Chapter V, and Clauses 2 and 3, Article 40, Chapter VII of the Government's Decree No.157/2004/ND-CP of August 18, 2004, detailing the implementation of a number of articles of the Ordinance on Post and Telecommunications and its guiding documents based on the provisions cancelled in this Clause.

Article 33.- Transitional provisions

1. Enterprises which have been doing business in delivery services before the effective date of this Decree shall complete the procedures to notify their delivery service business activities to relevant competent state bodies defined in Article 13 of this Decree within 3 months after this Decree takes effect.

2. Enterprises which have been doing business in mail delivery services before the effective date of this Decree shall complete the procedures to request relevant competent state bodies defined in Article 17 of this Decree to grant business licenses for mail delivery services under the provisions of the Ordinance on Post and Telecommunications and this Decree within 6 months after this Decree takes effect.

Article 34.- Implementation responsibility

Ministers, heads of ministerial-level agencies, heads of government-attached agencies and presidents of provincial/municipal People's Committees shall implement this Decree.